RealReal (NASDAQ:REAL) Shares Down 4.9% - Here's Why

Key Points

• RealReal shares fell 4.9% to about $10.39, with trading volume roughly 80% below the average session volume.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $17.75, well above the current share price.
• The company recently beat quarterly earnings and revenue estimates, reporting adjusted EPS of negative $0.01 and revenue of $192.57 million, up 16.6% year over year; however, insiders sold 173,004 shares worth about $1.9 million over the last quarter.

The RealReal, Inc. (NASDAQ:REAL - Get Free Report)'s stock price dropped 4.9% during trading on Monday . The company traded as low as $10.47 and last traded at $10.3910. Approximately 678,370 shares traded hands during trading, a decline of 80% from the average session volume of 3,325,927 shares. The stock had previously closed at $10.93.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on REAL. UBS Group boosted their price objective on shares of RealReal from $14.00 to $16.00 and gave the company a "neutral" rating in a report on Friday, August 7th. Robert W. Baird set a $13.00 price target on shares of RealReal in a research report on Friday, May 8th. Roth Capital reiterated a "buy" rating and issued a $19.00 price target on shares of RealReal in a research report on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of RealReal in a research note on Friday, July 17th. Finally, BTIG Research reissued a "buy" rating and set a $17.00 price target on shares of RealReal in a research report on Wednesday, June 3rd. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $17.75.

RealReal Stock Down 6.8%

The stock has a 50 day moving average of $11.59 and a 200 day moving average of $10.85. The firm has a market cap of $1.24 billion, a price-to-earnings ratio of -9.10 and a beta of 2.69.

RealReal (NASDAQ:REAL - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.02) by $0.01. The firm had revenue of $192.57 million during the quarter, compared to the consensus estimate of $188.11 million. RealReal's quarterly revenue was up 16.6% on a year-over-year basis. As a group, analysts predict that The RealReal, Inc. will post -0.13 EPS for the current fiscal year.

Insider Buying and Selling at RealReal

In other news, insider Todd A. Suko sold 17,567 shares of RealReal stock in a transaction on Friday, August 21st. The stock was sold at an average price of $10.97, for a total value of $192,709.99. Following the transaction, the insider owned 587,897 shares in the company, valued at approximately $6,449,230.09. This trade represents a 2.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Steve Ming Lo sold 12,559 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $10.97, for a total value of $137,772.23. Following the transaction, the chief accounting officer directly owned 176,910 shares of the company's stock, valued at $1,940,702.70. This trade represents a 6.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 173,004 shares of company stock valued at $1,899,283. 2.66% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Quarry LP acquired a new stake in shares of RealReal in the 3rd quarter valued at approximately $28,000. KBC Group NV acquired a new position in RealReal during the 1st quarter worth approximately $26,000. Larson Financial Group LLC acquired a new position in RealReal during the 3rd quarter worth approximately $31,000. Gables Capital Management Inc. bought a new position in RealReal in the 1st quarter valued at approximately $35,000. Finally, Persistent Asset Partners Ltd acquired a new stake in RealReal in the second quarter valued at approximately $46,000. Institutional investors own 64.73% of the company's stock.

RealReal Company Profile

The RealReal, Inc NASDAQ: REAL operates an online marketplace specializing in the authenticated resale of luxury goods. Since its founding in 2011 by entrepreneur Julie Wainwright, the company has positioned itself as a leading platform for consignors and shoppers seeking designer fashion, fine jewelry, watches, art, and home décor. Headquartered in San Francisco, The RealReal combines e-commerce technology with an in-house team of experts to offer a seamless buying and selling experience for secondhand luxury items.

At the core of The RealReal's business model is its consignment service, which enables individuals to sell pre-owned luxury products through a fully managed process.

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